Strategic KAIZEN: 7 Principles
Alin Posteuc?
Author of Strategic KAIZEN concept | Author | Performance Improvement Consultant | The ”Traian Vuia” Prize Laureate of the Romanian Academy
Implementing and Sustaining Synchronous Profitable Operations (SPO)
”The key objective of the Manufacturing Cost Policy Deployment (MCPD) system is to achieve the harmonious transformation of the manufacturing companies by coordinating this transformation in line with the developments of the need for cost reduction imposed by the market (shareholders, customers, competitors, and suppliers). Seven basic principles have been developed to make it easier to understand the core purpose of the MCPD system, namely, to achieve the continuous transformation of manufacturing companies to ensure their synchronization with market needs by aligning all systematic (a/n: Strategic KAIZEN) and systemic improvements coordinated by the need of profit and continuous cost reduction (Table 1.1) (Posteuc? and Sakamoto, 2017, pp. 82–86).” p. 13 (Posteuc?, 2018)
Strategic KAIZEN with the 7 Principles for Implementing and Sustaining Synchronous Profitable Operations:
”The key element of these principles is that the Manufacturing Cost Policy Deployment (MCPD) system must reflect in a predetermined way the economic need for profit by continuously reducing unit costs and not just the need for speed and quality of processes or, in other words, the long-term relevance of profit against productivity and quality. Essentially, this way of seeing improvements through the need for continuous reduction of unnecessary costs is based on the premise that the need for profit is perennial for the survival and development of the manufacturing companies.
The essence of reducing and/or eliminating losses and/or waste (stocks) is to generate profit, both external profit through capacity increases and, above all, internal profit by reducing unnecessary costs. Therefore, in terms of the MCPD system, productivity is addressed both in terms of outputs (focusing mainly on increasing capacity, especially if sales are increasing) and inputs (focusing mainly on cost savings, especially if sales are declining).” p. 14 (Posteuc?, 2018).
The concept Strategic KAIZEN was published in the 4 books
- Manufacturing Cost Policy Deployment (MCPD) (3 books; 2017, 2018, 2019);
- Speed-Based Target Profit (SBTP) (1 book; 2020).
The concept of Strategic KAIZEN has over 20 practical applications and over 230 explicit appearances in the texts of the 4 books.
Thank you,
Dr. Alin Posteuc? – CEO, Exegens; the author of the concept of Strategic KAIZEN, the MCPD system and the SBTP paradigm.
4 Books on Strategic KAIZEN: https://lnkd.in/gtGNWtJ
Author of Strategic KAIZEN concept | Author | Performance Improvement Consultant | The ”Traian Vuia” Prize Laureate of the Romanian Academy
3 年Principle 1 is the cardinal principle of Strategic KAIZEN. ”The multiannual and annual contribution of Manufacturing Cost Improvement (MCI) to profit must not change in an unplanned way in order to produce no adverse effects in terms of profit plan fulfillment. This contribution is allocated to each product family cost and thus to each product on its entire life cycle. By setting profit targets in each product family cost, the cost reduction strategy at the product level is translated to the MCI at the process level of the product family cost. Any increase or decrease in the target profit achieved from MCI for a certain product family cost would change the contribution to profit of each product family cost, the mission of productivity (enhancement of overcapacity or undercapacity), the unplanned resource allocation for systematic (a/n:?#StrategicKAIZEN), and especially systemic improvements, the time-to-market for new products (especially in case of reduction), and so on. So, an unplanned change in profit contribution of MCI can generate an increase in unit costs, and thus, a reduced competitiveness by price, by forming a self-increasing spiral amid an instability in productivity strategies.” (p. 82-83 Posteuca and Sakamoto, 2017)